SC IJPE 03

Jose F. Espiritu and David W. Coit

Abstract:

A component replacement methodology for electricity transmission and distribution systems was developed to solve equipment replacement problems for systems composed of sets of heterogeneous assets subject to annual budgetary constraints over a finite planning horizon. The proposed methodology is based on an integrated dynamic and integer programming approach. First, a dynamic programming algorithm is solved for each individual component in the system. Then, two different integer programming models are applied. The first one is used to check whether a feasible system-level solution can be obtained and it is also used to identify infeasibilities for the original problem. The second integer programming model is used to find the system-level replacement schedule with the minimum cost. The method developed can potentially be applied to any replacement problem composed of sets of heterogeneous assets subject to constraints imposed on the system. However, in this work, the method is demonstrated on the replacement analysis of a common electricity distribution system configuration. The objective is to obtain the minimum cost policy such that the Net Present Value of maintenance, purchase and opportunity costs is minimized.

Status: Published in Vol. 3, No 2, April 2007. pp. 288-290

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